When you decide to invest in a property, you place a considerable proportion of the money you own into one place. Ideally this would not be your only investment, for the reasons inherent in the old saying ‘don’t put all your eggs in one basket’. If it is, though, one small mistake on the part of a tenant or even a freak weather phenomenon could wipe out everything you have stashed away. Less serious incidents can prevent you from earning an income for your property.
Thankfully, the above risks led to the development of landlord protection insurance. This type of policy can put your mind at ease about the threats to your investment. Most policies cover you in case of damage to your property from a variety of sources. Comprehensive cover will pay out in every scenario not specifically excluded by the policy. Peril policies are the opposite – they cover only the risks mentioned by the agreement. The beauty of landlord protection insurance, however, is that often you are not only covered for the damage, but also for loss of earnings.
Legal problems between tenants and landlords can get expensive very quickly. Most landlord protection insurance will cover legal fees related to this. If the tenants are unable to pay and default on the rent, some insurers will pay out for this too. In the event that your property is damaged to a point at which is rendered uninhabitable, many policies will not only pay for the repairs to the property but also cover the rent for an agreed period.
As with any document concerning a legal agreement, landlord protection insurance policies must be gone through with a fine-tooth comb before you sign. The details of what is and isn’t included, as well as the price and length of cover are all things that should be understood fully. There is a large variety of different types of cover available – make sure you choose the best for you.